Forex trading involving the Iraqi Dinar (IQD) has gained attention from speculative investors and currency enthusiasts. While the potential for profit is often exaggerated by misinformation, it is possible to trade the IQD under specific conditions. This article explores how forex trading with the Iraqi Dinar works, what the risks are, and whether it’s a viable option for retail traders.

Key Takeaways

• The Iraqi Dinar is classified as an exotic currency with low liquidity and high spreads.
• IQD is not typically available on mainstream retail forex platforms.
• Trading the IQD is more speculative than strategic due to government restrictions and a fixed exchange rate system.
• Revaluation rumours surrounding the Dinar are largely unsubstantiated.
• Only a few niche brokers offer IQD-related trading, and it’s not part of most regulated forex offerings.

Can You Trade Iraqi Dinar on Forex?

The Iraqi Dinar is technically tradeable, but it’s not commonly available on platforms like MetaTrader 4/5 due to:

• Central Bank of Iraq (CBI) maintaining a managed exchange rate.
• Low international demand and poor convertibility.
• High volatility and risk of manipulation.

As a result, IQD trading is largely limited to:

• Currency dealers or physical cash exchanges
• Specialised platforms outside traditional forex brokers
• Speculative over-the-counter (OTC) markets

Legitimate brokers under FCA, ASIC, or CySEC regulation generally do not offer IQD pairs due to the risks involved.

Understanding the Dinar Speculation Hype

Over the past decade, online forums and promoters have claimed the Iraqi Dinar will “revalue” suddenly, resulting in massive profits. However, there is no verified economic roadmap or evidence from the CBI suggesting such a move.

Claim	Reality
IQD will be revalued overnight	No formal plan by CBI; rumours fuelled by speculation
Buy Dinar now, sell later at 100x profit	Unregulated dealers prey on this belief
IQD backed by oil reserves	Iraq’s economy is oil-dependent but unstable

How IQD Trading Differs From Major Pairs

Feature	Major Pairs (e.g., EUR/USD)	IQD Trading
Liquidity	High	Very low
Spreads	Tight (0.1–1.0 pips)	Wide (sometimes 500+ pips)
Regulation	FCA, ASIC, CFTC, etc.	Rarely regulated platforms
Volatility	Predictable with data releases	Politically driven and erratic
Strategy	Technical/Fundamental	Mostly speculative

Fundamental vs Technical Analysis for IQD

Due to its fixed or heavily managed nature, the Iraqi Dinar responds more to fundamental policy decisions than technical price action.

Aspect	Fundamental Analysis	Technical Analysis
Key Drivers	Oil prices, political stability, inflation	Not applicable—no liquid charts
Usefulness	Limited but better than charts	Ineffective due to sparse price data
Best Strategy	Long-term speculation (not advised)	Rarely used due to chart unavailability

Case Study: Misunderstanding IQD as a Forex Opportunity

An individual enrolled in a Forex Course shared their prior experience of buying physical IQD based on revaluation rumours. After understanding central bank policy, liquidity dynamics, and real trading instruments, they pivoted to learning about high-volume pairs like EUR/USD and GBP/JPY. Their focus shifted from speculative hopes to a strategy-driven, data-backed approach, improving consistency and reducing emotional trades.

Frequently Asked Questions

Is it legal to trade Iraqi Dinar on forex?

Yes, but most regulated brokers do not offer IQD due to low liquidity and compliance concerns. It is legal but uncommon.

Can I buy Iraqi Dinar from a forex broker?

Very few brokers offer IQD. Most trades happen via currency dealers, not on standard forex platforms.

Will the Iraqi Dinar be revalued soon?

There is no credible evidence or announcement from the Central Bank of Iraq supporting this. Claims of revaluation are speculative.

Is IQD a good investment in forex?

Not for most traders. It lacks liquidity, transparency, and trading infrastructure.

What’s a better alternative to trading the Dinar?

Major pairs like EUR/USD, GBP/JPY, and USD/JPY offer higher liquidity, better risk control, and clearer economic indicators.